Department for Business and Trade

Catherine Atkinson Excerpts

Wednesday 4th March 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

I thank everyone who has participated in today’s debate. I particularly thank my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) for opening the debate, as well as for his work as Chair of the Business and Trade Committee, and the members of that Committee who have spoken in today and produced a number of reports in this Parliament. I have very much enjoyed reading those reports, and they have been drawn on extensively during this debate. Members have made some incredibly important and pertinent speeches, and in the time available, I will try to trot through some of the answers at pace. Forgive me in advance if I do not manage to respond to everyone: I am happy to write and fill in any detail that might be missing afterwards.

I will start with the overarching strategy of the Department and why it has produced these estimates. The Department has reset our programme of spend around our growth mission and our industrial strategy. Our major investments in key sectors, combined with efforts to attract private capital, will ensure that taxpayers’ money is used effectively. At the same time, we are ensuring that the right resources are going into delivering our small business plan, creating the right conditions for small businesses to grow. I will say more on that shortly, as I know that many Members are concerned about small businesses.

I also need to explain, as it was mentioned by several Members, the rationale behind the in-year budget increase. It is primarily for three activities—British Steel, the Post Office and the British Business Bank. There has been a £1.351 billion increase in the annual managed expenditure budget, recognising that additional provisions are needed for postmaster compensation. That covers funding for the capture redress scheme, and for redress to family members of postmasters impacted by Horizon. There is a £626 million increase in capital department expenditure limits, largely for two reserve claims. The first is £375 million of funding for the Department’s support for British Steel, and the second is £200 million for growth sector businesses via the British Business Bank, to help more firms to scale up and become home-grown success stories. The reserve claim will ensure that we do not unnecessarily restrict the bank.

The shadow Minister queried why the Department is coming back with estimates, as it also did last year. Fundamentally, that is partly built into the structure of the British Business Bank. In order to provide the bank with the level of in-year flexibility that it needs to work with fund managers and draw down investment in businesses, it is important that the bank is not restricted at the outset and that we do not overcompensate or undercompensate the bank. That is one of the primary reasons why the Department is an outlier among the estimates. It is actually a sign of a well-functioning Department and a very well-functioning element of the British Business Bank.

I turn to some of the specific items. Given the scale of the support for the steel industry, I shall start there. It was raised by the Chair of the Select Committee and many other Members. Our steel industry is of course strategically important as part of British heavy industry, supporting the UK’s industrial base, our construction sector and our national and economic security, as we heard in the earlier estimates debate on the Ministry of Defence. Transforming the steel sector is essential for securing a competitive, modern and sustainable industrial base, ensuring the UK can meet its long-term net zero commitments while maintaining critical domestic capability.

Our commitment to the sector is evident in the intervention we made in April last year at Scunthorpe to ensure uninterrupted steel production and avoid the permanent and disorderly closure of the UK’s last operating blast furnaces, the Queen Anne and the Queen Bess in Scunthorpe. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production and carefully monitoring the use of taxpayer funds.

Several hon. Members mentioned the steel strategy, including my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance). We have a commitment to publish the strategy early in 2026. We had hoped to publish it before Christmas but we thought it best to publish it alongside the trade measures following changes in trade arrangements. We have worked carefully with the industry, UK Steel and the trade unions, and I hope that we will bring the proposals on trade and on the steel strategy to the House in a very short time.

I commend the management, the trade unions and the workforce at Scunthorpe on their diligence in this period. In difficult circumstances, they have achieved an excellent health and safety performance in stabilising operations. I also commend the commercial team at Scunthorpe for their high-speed rail order from Turkey. I think we can all take great pleasure in steel exports from the UK to Turkey. The shadow Minister was concerned that the Government did not have the know-how to support the industry. I can tell him that, having worked for 29 years in the industry myself, I am exercising very careful oversight of the production and operational activities of British Steel.

Several Members queried the numbers. To date, the Government have spent approximately £370 million on support for British Steel, covering items such as raw materials, salaries and unpaid bills. I understand the concern, but I note that that is still less than half the amount that the previous Government spent last time British Steel was in great difficulties. They simply flipped the business out to Greybull, a company that could not even run Rileys snooker halls without Rileys going into administration. This Government are developing a steel strategy, and planning to ensure that we maintain our ironmaking capacity at Scunthorpe as well.

More broadly, the Government are committed to providing up to £2.5 billon to support the UK steel industry. Funding and financing for steel companies is being delivered via the National Wealth Fund and direct support, including an additional £500 million grant for Tata Steel at Port Talbot and support for the official receiver’s sale process for Speciality Steel’s UK sites in Rotherham and Stocksbridge. Separately, the Government have committed an additional £420 million to new investment in Sheffield Forgemasters to expand capacity further as a direct result of the AUKUS submarine deal, bringing our total investment in Forgemasters to over £1.3 billion.

That was the first item; the second is the Post Office. I should begin by acknowledging the sub-postmasters who were impacted by the Horizon scandal, and, again, thanking my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North and the members of his Committee for their support and their challenges on these issues. The Government welcome that scrutiny. My right hon. Friend said that the Committee would publish a new report in the coming days, and we stand ready to review and respond to it.

I can confirm that we have now paid redress to more than 11,300 postmasters and made redress payments of £1.2 billion. My hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) and the Chair of the Committee were concerned about Fujitsu, as am I. Fujitsu has accepted that it bears a moral responsibility for what has happened, and has expressed its willingness to contribute financially. Let me make it clear that Fujitsu will have to pay. As for the amount that it will have to pay, it is important for the inquiry to complete its work and publish all the volumes of its report so that we can establish the level of compensation.

In respect of small business support, a number of issues were raised in connection with energy efficiency and energy costs. My hon. Friend the Member for Tipton and Wednesbury mentioned the British industrial competitiveness scheme. There are a number of other kinds of support for energy efficiency in small businesses, but I have already committed myself, at the Dispatch Box, to looking further at what can be done in that regard. The hon. Member for Maidenhead (Mr Reynolds) asked what we could do for Laura. I would direct Laura towards our plan for small businesses, which includes legislation on late payments, a business growth service and tailored support for high streets, which, hopefully, she will find helpful.

[Catherine Atkinson (Derby North) (Lab)]

We are seeing fantastic and significant investment and regeneration in our city centre in Derby, but it still bears the scars of 14 years of austerity and neglect. Will the Minister tell us a bit more about how the Government are helping businesses to grow?

[Chris McDonald]

Look out for our plan for high streets, which will be published shortly.

My hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell) and for Stoke-on-Trent South (Dr Gardner) mentioned the gas-intensive nature of ceramics businesses. I am aware of that, and am looking at it very carefully.

I hope that I have been able to trot through some of the main issues. I now want to leave some time for the Chair of the Committee to make some concluding remarks.

Small Modular Nuclear Reactor Power Station: Wylfa

Catherine Atkinson Excerpts

Monday 17th November 2025 Commons Chamber

[Michael Shanks]

I think Plaid Cymru as a party has different views on this matter, but I am grateful to hear of the right hon. Lady’s support for new nuclear. The AI growth zones are all about us trying to designate an area for data centres, which is important for our future economic development, in a way that allows us to plan strategically how power will get to it and what transmission infrastructure is required. It is also about us trying to give confidence that infrastructure will be in place so that data centres know it is a site that can be invested in, which brings forward significant amounts of private investment. If she has specific questions about the infrastructure, I am very happy to speak to her outside the House.

[Catherine Atkinson (Derby North) (Lab)]

There will be good, well-paying jobs at Rolls-Royce in Derby to get these reactors built. That will not just benefit those doing those jobs, but power up the local economy, putting money in the tills of shops, restaurants and pubs. There is huge pride in knowing the crucial roles being played in powering Britain with clean energy. Will the Minister tell us more about the work being done to maximise the extra jobs and prosperity that will be delivered in Derby, Warrington, Wylfa and other sites as a result of this Labour Government’s investment in this historic project?

[Michael Shanks]

My hon. Friend is right to point out the wider impact that investment has in not just the nuclear supply chains, but the local communities that that drives forward. Nuclear tends to have much more sustainable, well-paid and trade-unionised jobs than other parts of our energy system, which means that there are wider economic benefits for those who work in the nuclear industry. We want to see a great many more jobs in nuclear right across the country. We should be hugely proud that Rolls-Royce is taking forward this project in the UK; it is hugely innovative. The UK is at the forefront of this new technology, which will change the future energy system for the UK and across the world, and we are really proud that it will be built in Britain.

UK Modern Industrial Strategy

Catherine Atkinson Excerpts

Monday 23rd June 2025 Commons Chamber

[Jonathan Reynolds]

I will be frank with my hon. Friend’s constituents. In the past, Governments have produced documents that do not have much longevity but have a lot of analysis without necessarily having real measures behind them. That is why we have launched this strategy on energy, finance and skills, on the powers that local areas need and how those programmes will work consistently across Government. This is always about creating the conditions for the private sector to thrive in, but anyone looking at the big challenges facing UK industry will see them addressed in this document.

[Catherine Atkinson (Derby North) (Lab)]

Worryingly, only 9% of secondary vocational learners are studying engineering, manufacturing and construction compared with the OECD average of 32%, so I warmly welcome that this industrial strategy confirms a £100 million investment to support engineering skills in England. Will the Secretary of State outline how that funding will help to meet skills shortages and deliver growth across the country, including in engineering cities such as Derby?

[Jonathan Reynolds]

Derby has an incredible pedigree in engineering skills. I agree with the case that my hon. Friend has made so strongly. I have added some funding from my own Department to that from the Department for Education around engineering, because the shortages are so acute and the opportunities so great. These are great jobs, careers and lives for young people or anyone transferring into that sector, with more funding for the courses, more flexibility in the courses that can be run and more capacity in technical excellence colleges. Although it is also about availability in all parts of the country, we could not get a better pedigree than my hon. Friend has in Derby, which is a great success story for this country and for her local area.

Employment Rights Bill

Catherine Atkinson Excerpts

Report stage
Tuesday 11th March 2025 Commons Chamber

The Public Interest Disclosure Act 1998 was groundbreaking for its time, but the UK has since fallen behind our comparator jurisdictions, such as the EU and Japan, on whistleblower protections. I hope that the Government will consider supporting new clause 72 or equivalent measures, which would be good for workers, businesses and taxpayers. I also hope that the Minister will meet me to discuss this matter following today’s debate. Through this new clause, we can take action to ensure that whistleblowers are supported, that businesses are given the tools to root out wrongdoing, and that taxpayers are spared from having to bail out state scandals.

[Catherine Atkinson (Derby North) (Lab)]

I draw attention to my entry in the Register of Members’ Financial Interests and the fact that I am a proud trade union member. I give my full support to the measures in this landmark Bill.

In Derby we make things, from nuclear reactors that power submarines to the trains, cars and aeroplane engines that get people and goods where they need to go, and food production operations that help put food on our tables. We do not just have large companies with big economies of scale; we also have thousands of small and medium-sized companies. Many businesses that I have visited—large and small—are investing in their workforce, want to pay them properly and want to provide stable, secure work that enables their employees to build lives and families, but they want a level playing field so that they are not undercut by competitors that do not play by the rules, that avoid their responsibilities and that exploit those who work for them.

When people are stuck in insecure, low-paid work, planning for their future is impossible. It is wrong that so many people have no idea whether they will have five hours of work or 50 in a week, wrong that they have no idea whether they will earn enough to pay their bills, and wrong that they can have paid for childcare, be on a bus to work and get a call saying they are no longer needed. What is shocking is that we have 2.4 million people in irregular work, such as those on zero-hours or low-hours contracts, or in agency jobs. I am proud that this Government, through this Bill, are taking action to end exploitative zero-hours contracts, and that amendments 32 and 33 will ensure that agency workers are also protected.

On Second Reading of this groundbreaking Bill, I spoke about the importance of enforcement. A right is not worth the paper it is written on unless it is enforced; and the provisions that we make, the guidance that we set and the laws that we pass are only as strong as the enforcement.

For part of my career as a barrister, I had the honour of representing working people, but I always knew that for the many who did seek justice through tribunals, there were many who did not feel able to take action. The Low Pay Commission has found that low-paid and exploited workers can be reluctant to speak out about abuses of their rights. Last year we celebrated the 25th anniversary of a Labour Government bringing in the national minimum wage, but the Low Pay Commission estimates that one in five workers receiving it were not provided with the correct pay in 2022.

On Second Reading, I called for the strengthening of the Fair Work Agency, which will enforce the national minimum wage, statutory sick pay and a wide range of rights, such as holiday pay, so that everyone plays by the same rules. I am hugely pleased to see that new clauses have been tabled that would strengthen the powers of the Fair Work Agency. As we will talk about tomorrow, new clause 57 would give the agency powers to bring proceedings to an employment tribunal on behalf of workers. That could make a huge difference for workers, and it helps protect businesses from being undercut by acting as a real deterrent. The sooner that these measures are in place, the sooner enforcement can begin and justice can be delivered, and this will bring us better protections, better productivity and better growth.

[Justin Madders]

First, I think I need to mention that my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) is celebrating his 40th birthday today, and what a great way to spend his birthday. He is one of the people who have worked tirelessly over many years in different guises to help us get where we are today.

Given the number of speeches and contributions, it is just not going to be possible to pay tribute to everyone in the time I have, or indeed to reference every speech and every amendment, but I will do my best to cover as much as possible.

I will start with my hon. Friend the Member for Nottingham East (Nadia Whittome), whose new clause 73 relates to significant structural changes to the statutory sick pay system. I thought she made a very personal and persuasive speech, and I agree with her that phased returns to work are an effective tool in supporting people to stay in or return to work, helping to reduce the flow into economic inactivity and the cost to businesses of sickness absence. By removing the waiting period, employees will be entitled to statutory sick pay for every day of work missed. This better enables phased returns to work—for example, by supporting someone who normally works five days a week to work a three-day week, being paid SSP for the other two days. That simply would not have been possible under the existing system. We are committed to continuing to work closely with employees and employers to develop and implement a system that is fair, supportive and effective in kick-starting economic growth and breaking down barriers to opportunity, and we will continue to have conversations about that.

Turning to new clause 102 from my hon. Friend the Member for Bradford East (Imran Hussain), I pay tribute to him for his work as a shadow Minister in this area. The changes we are bringing in through this Bill mean that up to 1.3 million low-paid employees will now be entitled to statutory sick pay, and all eligible employees will be paid from the first day of sickness absence, benefiting millions of employees. The new percentage rate is consistent with the structure used for other statutory payments. It is simple to understand and implement, and with the removal of waiting periods, the internal modelling from the Department for Work and Pensions shows that most employees, even those who may nominally earn less per week, will not be worse off over the course of their sickness absence.

I believe the speech by my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) was her first from the Back Benches, and I do not think she will be on them for very long if she continues to make such contributions. I thought it was an excellent speech, and the way she spoke about her constituent Mr B really hammered home the importance of tackling non-disclosure agreements. I would like to pay tribute to her ongoing efforts to ensure that victims of misconduct and bullying can speak up about their experiences, and get the help and support they need.

I want to thank the hon. Member for Oxford West and Abingdon (Layla Moran) for originally tabling the amendment, and for meeting me last week to share, sadly, another horrific story about the abuse of NDAs. I also thank the hon. Member for Bath (Wera Hobhouse) for her contribution in this area.

There are legitimate uses of NDAs, but I want to be clear—we have heard too many examples of this today—that they should not be used to silence victims of harassment or other misconduct. I understand that hon. Members want to ensure equal protection in relation to NDAs concerning harassment across the economy, and I absolutely hear what they have said. However, we have to acknowledge that this would be a far-reaching change, and it would be to take a significant step without properly engaging with workers, employers and stakeholders, and assessing the impact on sectors across the economy. I want to reiterate that I recognise that non-disclosure agreements are an important question that warrants further consideration, and we will continue to look at the issues raised. My right hon. Friend the Member for Sheffield Heeley said that she wants me to go further, and I look forward to engaging with her and with organisations such as Can’t Buy My Silence.

New clause 30, in the name of the hon. Member for Bridgwater (Sir Ashley Fox), would give employees who are special constables the right to time off work to carry out their voluntary police duties. I join him in paying tribute to special constables, who make an invaluable contribution to policing across the country. It would not be appropriate, however, to support additional legislation on this matter without a comprehensive analysis on the impact such a change could bring to policing. As the hon. Gentleman knows, we debated it in Committee and my officials have been in discussion with colleagues at the Home Office to learn more about the topic. Further engagement is continuing with the staff association for special constables and the Association of Special Constabulary Officers. I recognise that the legislation is now half a century old and needs a considerable look. We cannot support the amendment tonight, but I am glad that there is at least one Member on the Conservative Benches who supports increasing employment rights.

Turning to new clause 7, tabled by my hon. Friend the Member for Walthamstow (Ms Creasy), I want to start by recognising the key role that paternal leave plays in supporting working families. The arrival of a child is transformative for all parents. The Government understand and value the vital role that fathers and partners play in raising children, and we want to support them to do that. I commend my hon. Friend for her work in this area.

We already have a statutory framework in place that guarantees eligible employed fathers and partners a protected period of paternity leave, ensuring that they cannot be required to work while claiming that leave, or be discriminated against by their employer for taking it. However, I recognise what my hon. Friend the Member for Darlington (Lola McEvoy) said about the limitations on those protections. I also pay tribute to her for her work on this issue.

Paternity leave is available to the father of the child or the mother’s partner irrespective of their gender, and the leave can be taken by the father or partner at any point in the first year following the child’s birth or adoption. I acknowledge the wider point made by my hon. Friend the Member for Darlington, which is that we need to do more to ensure that the parental leave system as a whole supports working families. As a Government, we have committed to doing that. I recently met The Dad Shift, Pregnant then Screwed and Working Families to discuss that very issue.

Through the Bill, we are making paternity leave and unpaid parental leave day one rights, meaning that employees will be eligible to give notice of their intent to take leave from their first day of employment, removing any continuity of service requirement. That brings them both into line with maternity leave and adoption leave, simplifying the system. We are also committed to reviewing the parental leave system. The review will be conducted separately from this Bill. Work is already under way across Government on planning for its delivery and will commence before Royal Assent. We are scoping the work already under way across the Department for Work and Pensions, the Department for Business and Trade, and the Ministry of Housing, Communities and Local Government. We of course want and expect to engage widely with stakeholders as part of that review process, and I would expect my hon. Friend the Member for Walthamstow to engage with us in that respect.

New clause 6, tabled by my hon. Friend the Member for Leeds East (Richard Burgon), would partially reinstate, to the Equality Act 2010, a similar measure that was sponsored by the previous Labour Government. This Government continue to have sympathy with its aims. We all know that the statutory questionnaire was sometimes found to be a helpful, informative tool. While the Government will not support new clause 6, we will be giving close consideration to the impact of the repeal of the statutory questionnaire and any steps that may be needed during this Parliament.

Oral Answers to Questions

Catherine Atkinson Excerpts

Thursday 30th January 2025 Commons Chamber

[Gareth Thomas]

I think the right hon. Gentleman needs to check his sources for comments from business leaders. Only yesterday the British Chambers of Commerce, the CBI and the Federation of Small Businesses were making very positive comments about our plans for growth, and last week, interestingly, PwC published its annual survey of global CEOs to reveal that Britain was the second most attractive country in the world in which to invest. That is something that I do not think the party opposite ever achieved.

[Catherine Atkinson (Derby North) (Lab)]

Business confidence increases when businesses know that they have the skilled workforce they need in order to grow. We have just had Nuclear Week in Parliament, and it was a pleasure to host Rolls-Royce and its apprentices. Its nuclear skills academy is providing a pipeline of talent, and the same is needed across other industries—from technical skills to creative skills, and from multinationals to small businesses. What cross-departmental discussions have Ministers had about helping businesses of all sizes to provide skills opportunities for our future workforce?

[Gareth Thomas]

I pay tribute to my hon. Friend for her support for Rolls-Royce, which is one of our great British companies leading the way in many export markets across the world. Only yesterday I was discussing with the Minister for Skills our plans to reform the growth and skills levy to make it easier for businesses such as Rolls-Royce to recruit apprentices and find the talent that they need to continue to be successful.

Budget Resolutions

Catherine Atkinson Excerpts

Wednesday 6th November 2024 Commons Chamber

[Catherine Atkinson (Derby North) (Lab)]

My constituents go to work to make trains, planes and automobiles at Alstom, Rolls-Royce and Toyota, and they work in their supply chains. This Budget delivers ambitious plans for rail infrastructure, nearly £100 million in R&D funding for aerospace, and £2 billion to support the automotive sector. To get to work, many of my constituents commute; 1.2 billion vehicle miles were travelled on Derby’s roads last year. The fuel duty freeze and the extra half a billion pounds to fix potholes are hugely welcome.

My constituents teach and learn at our great university and schools. They treat others and are treated at the Royal Derby hospital. They work in our shops and restaurants, and on the building sites where the regeneration of our city is taking shape. We in Derby are laying the foundations for growth—literally. Building is under way on a new university business school, a new mental health unit at Kingsway and a new performance venue at Becketwell. At Friar Gate goods yard, which has stood derelict for over 50 years, new homes and businesses are being built. There is also investment in our theatres—£20 million of funding that this Budget underwrites.

We needed and got a Budget that supported our ambitions. Last week, I went from the Budget statement to a meeting of small businesses in my constituency, which was organised by the Federation of Small Businesses. We discussed how this Budget will grow the cake, from investment in skills and reform of business rates to the approval of the east midlands investment zone and start-up loans. This is a Budget that is, at last, honest about the public finances being in a mess, and we have made tough decisions so that our businesses can have the stability and certainty they need.

To rebuild Britain, however, we also need to reset the broken contract with working people. For 14 years, in Budget after Budget, from austerity to Liz Truss’s mini-Budget, working people were barely offered crumbs from the table, while productivity and growth flatlined—but no more. Working people now have a proper seat at the table. The minimum wage will increase from £11.44 to £12.21 an hour next April, which will affect one in 10 Derby North workers. For 18 to 20-year-olds, there will be a 16% increase to £10 an hour. Derby has the second highest average salaries outside London, so for those moving on with their careers, there will be a rise in the income tax and national insurance contributions thresholds from 2028-29. Finally, investment—

[Madam Deputy Speaker]

Order. I call Sam Rushworth.